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Wine versus Gold; in the world of finance and investments, is it comparable? Despite the price fluctuations over the last few months, gold is still perceived as the ‘safe haven’. As investments in fine wine are relatively new, it is met with some reluctance, even from seasoned investors. More often than not, our newly interested account holders will ask “as an investment, can wine be compared to gold?”

There are differences between a wine-fund and a wine portfolio – each has its merits as well as disadvantages. Based on your (the investors) financial perspective, as well as specific needs and requirements, you may find one is more suitable than the other, especially when looking to optimize your returns with minimal risk.

Gone are the days where a Hugo Boss suit and Rolex timepiece would propel your perception in the public eye. Even a Ferrari in the garage no longer carries as much status as it once did; however, top class luxury wines are slowly becoming a status symbol for the wealthy and prosperous.

The liquidity of luxury wines is a hot topic for newcomers into the world of wine investment. Despite the lucrative nature of fine wine assets, liquidity is a justifiable concern for the investors, as it can determine the fate of a successful or unsuccessful investment.

Can one compare investments in luxury fine wines against stock market investments? Absolutely not. Investing in stocks and shares are traditional investments in a highly liquid market, whereas fine wines are a completely new form of alternative investment, or? Incorrect again.